Daily news: the market is waiting for the new step in the US-China trade war
- The trades have started very cautious this week as everyone is waiting for the final decision concerning the US-China trade relationship. It was announced earlier, that Trump is planning to impose the tariffs targeting about $200 billion in Chinese production. It is obvious, that these negotiations will influence the greenback’s potential. Despite the USD index was making some choppy moves towards 95.0 last week, it’s still unclear whether it can blow off. On the other news for the USD, it also important to follow the announcement of the US Empire state manufacturing index today at 3:30 pm MT.
- USD/CAD rebounded from its support at 1.2975 and reached the 100-day MA last week. The today’s release of foreign securities purchases may affect the loonie. It’s forecasted, that the numbers will be lower, than in previous month. If it’s true, USD/CAD will possibly react by reaching the 50-day MA at 1.3040. The highest resistance for now is at 1.3226. In the opposite situation, it will go back to the support.
- After reaching the 50-day MA and testing the 100 day-MA at 1.1675 last week, EUR/USD closed in the red zone at 1.1622 on Friday. If it goes down, the support level is at 1.1600, otherwise keep an eye on the resistance at 1.1720.
- GBP/USD reached its highest level in 2 months last week, however, Friday was bearish for the currency pair. This was highly influenced by the continuing Brexit worries. However, the meeting of Theresa May and the EU leaders may affect the rate. If it grows from the support near 1.3032, the cable can keep going to the potential resistance level at 1.3210. In the other situation, the slump below 1.3032 would direct the pair to the lowest support at 1.28.
- USD/CHF tested the 200-day MA last week and made a sentimental fall towards its 5-months low. If it breaks the support at 0.9640, the bears will take over the market. In the opposite situation, keep an eye on the resistance at 0.9754.
The level of GDP growth for Canada will be published on June 28, at 15:30 MT time.
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